{"text":[[{"start":7.7,"text":"A halt to subsea cable projects in the Middle East is set to persist despite the US-Iran ceasefire, threatening to hamper the region’s efforts to become a hub for AI, cloud computing and the wider digital economy. "}],[{"start":21.4,"text":"Alan Mauldin, research director at data group TeleGeography, said all subsea cable projects in the Strait of Hormuz and the Gulf had been “delayed indefinitely”. "}],[{"start":31.45,"text":"Ryan Sher, chief operating officer of West Indian Ocean Cable Company — a partner on the Meta-led 2Africa cable network connecting Africa to Europe and the Middle East — said that until security was assured, cable laying in the Red Sea was “on pause”. "}],[{"start":46.05,"text":"The suspensions risk denting confidence in the region as a destination for digital investment, complicating governments’ efforts to diversify their economies beyond oil. "}],[{"start":56.449999999999996,"text":"Countries in the Gulf have invested heavily in data centres, cloud services and AI but their ambitions depend on reliable infrastructure as much as capital, power and access to chips."}],[{"start":68.05,"text":"Masha Kotkin, an energy and geopolitical analyst, said stalled projects “put a question on the ambitions of countries in the Gulf Cooperation Council in becoming cloud computing and AI powerhouses”."}],[{"start":null,"text":"
"}],[{"start":81.2,"text":"Mostafa Ahmed, senior researcher at Emirati think-tank the Al Habtoor Research Centre, said even after the reopening of the strait, “in the eyes of infrastructure investors it now carries the reputation of a fragile digital chokepoint, and that perception will not unwind quickly”."}],[{"start":97.65,"text":"For projects to resume, analysts say, the ocean floor will need to be surveyed and demined, while cable-laying ships that were diverted elsewhere during the conflict will have to be reassigned to the region, something that could take months."}],[{"start":110.80000000000001,"text":"Insurance is another obstacle. Clauses that forced operators to pause projects are likely to remain in place until there has been a sustained period of peace and security, limiting companies’ ability to restart projects."}],[{"start":123.9,"text":"Several major subsea cables pass through the strait, providing connectivity and services to the Middle East and connecting countries across Africa, Asia and Europe."}],[{"start":133.9,"text":"Ahmed said that while a small fraction of international telecommunications traffic passed through the strait, “it is a critical . . . digital artery”."}],[{"start":143.05,"text":"Given the region’s importance to digital infrastructure and logistics, he added, any disruption would have “ripple effects” across Africa, Asia and parts of southern Europe, with India particularly exposed. "}],[{"start":156.35000000000002,"text":"Companies were unlikely to walk away from existing investments, according to Kotkin, but they may delay new spending, with projects still in the planning phase most at risk. "}],[{"start":167.25000000000003,"text":"In March media reports claimed Meta had stopped work on the Gulf section of 2Africa and that Alcatel Submarine Networks, the French cable-laying company employed on the project, had issued force majeure notices for all operations in the Gulf. Meta did not respond to a request for comment. "}],[{"start":184.40000000000003,"text":"Other planned or partially laid cable projects that cross or pass through the strait include the proposed $700mn WorldLink network connecting Gulf states, Fibre in Gulf, owned by Qatari telecoms group Ooredoo, and Sea-Me-We 6, which links south-east Asia to Europe."}],[{"start":203.30000000000004,"text":"The halt to projects in the Gulf follows repeated problems on another crucial telecommunications link in the region."}],[{"start":209.60000000000005,"text":"In 2024 three cables in the Red Sea were severed by an anchor dragged from a cargo ship sunk by Houthi rebels in Yemen, disrupting traffic and forcing telecoms companies to reroute data."}],[{"start":222.15000000000006,"text":"Sher said WIOCC had made a “massive investment” in the section of 2Africa that runs through the Red Sea towards Europe and that this part of the network was now “effectively not usable for us”."}],[{"start":233.95000000000007,"text":"The outage, alongside incidents of cable sabotage in Europe in recent years, has added to a sense among operators that subsea networks are becoming more vulnerable to geopolitical instability. "}],[{"start":245.65000000000006,"text":"Iran’s threat in May to impose fees on cables passing through the strait has also stoked unease. Although analysts doubt Tehran could enforce the charges, they say the move shows that the regime views such infrastructure as strategic assets. "}],[{"start":261.30000000000007,"text":"Prysmian, an Italian cable manufacturer that operates in the Middle East, said customers were increasingly concerned about the security of subsea cables, not just their quality and price."}],[{"start":272.70000000000005,"text":"Operators have long sought diverse routes across multiple corridors to avoid chokepoints, but the conflict has made the search more urgent. "}],[{"start":280.65000000000003,"text":"WIOCC is looking at cable routes through Africa that reduce reliance on the Middle East as well as land-based options. "}],[{"start":287.95000000000005,"text":"But Sher described a mood of “hopelessness” as the industry struggled to see when projects in the Middle East would be able to move forward. "}],[{"start":296.00000000000006,"text":"“There’s no light at the end of the tunnel that you can really see in the traditional routes or the areas which everybody was planning.”"}],[{"start":303.40000000000003,"text":"Additional reporting by Kieran Smith in London. Cartography by Steven Bernard."}],[{"start":315.55000000000007,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782377325_8218.mp3"}